Demand for skilled tradespeople is soaring – especially in the appliance repair industry, which continues to boom. Driving factors behind the current expansion include more technological advancements, improved living standards, and government initiatives for energy-efficient appliances.
To capitalize on current industry growth, it’s essential to position your business for success. Here are five steps to follow when launching an appliance repair business from the ground up.
1. Obtain appliance repair license and training
Before launching your appliance repair company, you must develop the right skills to complete appliance repairs. Although earning your appliance repair license isn’t mandatory, certification helps build customers’ trust and can lead to greater business success.
The International Society of Certified Electronics Technicians (ISCET) represents a clear path to an apprenticeship in appliance repair certification. The voluntary national certification program oversees the National Appliance Service Technician Certification (NASTeC) exams. NASTec exams measure the knowledge, ability, and skills technicians require when completing appliance repair and servicing. Obtaining the NASTeC certification demonstrates that you have the highest level of professional recognition in the appliance service industry.
But getting your appliance repair license is only the first step. Next, you should continue getting as much hands-on experience and on-the-job training as possible. Learn from others while obtaining a solid understanding of the industry and gaining a practiced skill set.
Simultaneously, start purchasing appliance repair tools and equipment you’ll need to complete appliance repairs.
2. Formulate a business plan
Effective planning is crucial for the success of any business – but especially at a business’s onset.
Creating a business plan, which details a company’s future goals and strategy to achieve them, is the first step after generating a business idea. This comprehensive, carefully thought-out document includes essential information such as:
- A value proposition
- Products and services
- Target market
- Revenue sources
- Industry competition
- Marketing strategy
- Financial documents, including a profit and loss statement, balance sheet, and cash flow statement
- Budget
You can use your business plan to win the necessary investment and support from investors and partners.
3. Get appliance repair business insurance
Before completing home and business repairs, you must register and insure your company. You’ll need to brainstorm a name for your business and register it legally. Four different ways exist to register your business name, each with a unique purpose. Your business structure and location will determine which ones you must follow legally.
You’ll also have to decide on your appliance repair business’s structure or entity. Choose from four main types – sole proprietorships, partnerships, corporations, and Limited Liability Companies (LLCs).
Each business structure has its own pros and cons regarding liability exposure, cost, and administrative requirements. However, the most popular choices for appliance repair businesses are usually sole proprietorships and LLCs.
Sole proprietorships expose personal assets to risk without any liability protection, while LLCs provide legal separation between the business entity and the individual.
You’ll also need to obtain several licenses, permits, and registrations from federal, state, and municipality agencies, including:
- Federal licensing: The type of certification you’ll need with the Environmental Protection Agency (EPA) will depend on the types of appliances you’ll service. Most appliance repair businesses will require Type 1 certification for servicing small appliances.
- State licensing: Certain states require licensing for appliance repair businesses. For example, Texas appliance technicians must have a Texas Residential Appliance Installer License. In California, a fee needs to be paid to The Bureau of Household Goods and Services.
- Local licensing: Every municipality has its own regulations surrounding appliance repair businesses.
- Federal employer identification number: If you plan to hire employees or establish a partnership, you’ll need to register for this unique nine-digit number that identifies your business with the Internal Revenue Service.
- Sales tax permit or number: Selling products, offering particular services, or hiring employees requires a state sales tax permit or tax ID number.
- Resale certificate: A resale certificate lets your business purchase repair parts for household appliances tax-free.
- Certification of occupancy: A certificate of occupancy is necessary before opening, whether your business is home-based or in a building.
Next, you should obtain appliance repair business insurance to protect you, your clients, and your business from accidents while working.
Besides general liability insurance for your business, insure your valuable appliance repair tools and equipment with commercial property insurance. Commercial auto insurance will protect your service business vehicle in the event of an accident.
If you plan on hiring staff, ensure you have worker’s compensation insurance to cover possible injuries on the job.
4. Find appliance repair customers
Now that your business is set up, you’ll want to start earning some revenue. You’ll need to implement a marketing strategy to attract your first customers.
In developing your business plan, you did a lot of research surrounding your products and services and target market. By now, you’ll also have an idea of how best to reach these customers.
To create a successful marketing strategy, you should:
- Identify your target market: Be as specific as possible when outlining who your most common client will be. For example, your target market may be residential homeowners who want to upgrade to an energy-efficient appliance using a government rebate program.
- Price your products and services: Create pricing guidelines by using your competitors’ research from your business plan, expenses, and experience. How much you’ll charge will directly impact your salary. The average appliance repair technician’s salary is almost $50,000 in the United States.
- Contact your target market: Some marketing approaches are more suitable than others depending on your target audience. But no matter who you’re trying to target, having a website is essential. Websites build brand recognition and industry reputation and are where 76 percent of consumers go before contacting a business directly. Other top-rated marketing strategies include email marketing, online reviews, and social media.Run your appliance repair business efficiently.
5. Run your appliance repair business efficiently
From answering calls to scheduling jobs to providing estimates, there’s a lot involved with managing an appliance repair business. Without the right administrative support, you risk making a poor impression on your customers.
AnswerForce’s appliance repair answering service offers professional 24/7 call answering, lead capture and qualification, and appointment scheduling.
Our after-hours answering service ensures customers receive the urgent services they need when an emergency appliance repair occurs. Our live chat answering service provides website or Facebook customers with instant information regarding appliance repairs, installations, or emergencies.
For more details about how we can help your new appliance repair company, check out answering services.